State Medicaid spending dropped to nearly zero in March as the Cuomo administration again delayed payments to superficially balance the state’s books.

Comptroller Tom DiNapoli’s cash report for March, posted on Wednesday, showed just $9.2 million in Medicaid disbursements. The state’s share of Medicaid spending averages almost $2 billion per month. The comptroller’s numbers reflect so-called Department of Health Medicaid, which covers the bulk of the program but excludes most spending on recipients with mental disabilities.

DOH Medicaid spending for the fourth quarter of the fiscal year was down by more than $2 billion from the third quarter, continuing the erratic pattern of recent years.

medicaid-quake-7081639
Source: New York State Division of the Budget, Office of the State Comptroller (click to enlarge)

The maneuver appears to be a repeat of spring 2019, when the state delayed $1.7 billion in Medicaid payments owed to health-care providers and managed care plans from late March to early April.

That transaction – driven by undisclosed spending overages in the Medicaid program – was not made public until weeks after it happened. It threw the newly enacted state budget out of balance and led to what became a $4 billion deficit in the state’s Medicaid budget.

Cuomo’s plan to close that gap included drawing from stronger-than-expected tax receipts, enacting cost-cutting recommendations from his Medicaid Redesign Team and continuing to defer payments into future fiscal years. This time, the delay was done with advance notice and tacit approval of the Legislature.

Such delays are considered bad fiscal management because they disguise the true amount of state spending and raise the risk of cash-flow problems over the long-term.

In spite of skipping a whole month’s worth of payments, state Medicaid spending ended the 2019-20 fiscal year at $23.2 billion, which is 14 percent higher than the year before.

It’s also about $1.5 billion or 6 percent over what the state projected it would spend in January’s update to the financial plan – a sign that the Cuomo administration’s struggles to control Medicaid spending have continued.

 

About the Author

Bill Hammond

As the Empire Center’s senior fellow for health policy, Bill Hammond tracks fast-moving developments in New York’s massive health care industry, with a focus on how decisions made in Albany and Washington affect the well-being of patients, providers, taxpayers and the state’s economy.

Read more by Bill Hammond

You may also like

The Public Can Now See the Vaccine Task Force Recommendations that the Cuomo Administration Held Back

Even as Governor Cuomo touted vaccine approvals by a state-appointed panel of experts, his office was withholding the group's detailed findings from public view. The governor's six- Read More

New York’s Medicaid and Public Health Crises Get Short Shrift in the New State Budget

In spite of an ongoing pandemic and spiraling Medicaid costs, New York's health-care system received surprisingly little attention in the new state budget. On issue after issue, law Read More

Empire State’s new budget is a bridge to nowhere

Looking ahead to an uncertain post-pandemic recovery, New York’s newly enacted state budget for fiscal year 2022 raises spending by staggering amounts that—barring an unlikely rapid return to peak 2019 economic activity in New York City—can't possibly be sustained for more than a few years. The budget is a mid-2020s fiscal disaster in the making: an incomplete bridge over a deepening river of red ink. Read More

Lawmakers Mull Medicaid Proposals That Would Speed New York Toward a Fiscal Cliff

As a budget deal nears in Albany, reining in spiraling Medicaid costs seems to be the last thing on anyone's mind. Governor Cuomo is advancing only Read More

Tax hike and huge spending increase seem likely in next NY budget

New York state today began its 2022 fiscal year without an adopted budget—which, in itself, is not a big deal. The state government can continue to pay bills and employee salaries next week if either final appropriations Read More

Cuomo Pushes Budget Change Sought by Hospital Group Implicated in Pandemic Scandals

A hospital lobbying group at the heart of scandals plaguing the Cuomo administration is again getting the governor's help in pushing a late change to the state budget. Aides to Gove Read More

The Cuomo Administration Is Withholding Pandemic-Related Records Again

In an echo of the Cuomo administration's stonewalling on nursing home data, the governor's office has for a third time delayed releasing records of its vaccine review panel, this time until mid-April. Read More

Cuomo’s Schedules for the Peak of New York’s Pandemic Show Limited Contact with Outside Experts

As New York's coronavirus pandemic exploded last spring, Governor Cuomo's circle of regular contacts dwindled to a handful of close advisers, according to his recently released official schedules for March and April. Read More

Subscribe

Sign up to receive updates about Empire Center research, news and events in your email.

CONTACT INFORMATION

Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100
Fax: 518-434-3130
E-Mail: info@empirecenter.org

About

The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.

Empire Center Logo "...the Empire Center is the think tank that spent months trying to pry Covid data out of Mr. Cuomo's government, which offered a series of unbelievable excuses for its refusal to disclose...five months after it (the Empire Center) sued, Team Cuomo finally started coughing up some of the records." -Wall Street Journal, February 19, 2021

SIGN UP TO READ ABOUT THE ISSUES IMPACTING NEW YORKERS.